Legislature extends AB 1629 SNF (Skilled Nursing Facility) funding

After months of advocacy, CAHF is pleased to announce that the Legislature late on Aug. 31 passed Assembly Bill 1489, the trailer-bill legislation extending the authorization of AB 1629 for Medi-Cal skilled-nursing facilities.

Passage of the measure in the final minutes of the legislative session is a significant accomplishment for the skilled-nursing community, which was facing possible reimbursement cuts at the beginning of the annual budget process. Approval of AB 1489 ensures a stable reimbursement environment for SNF providers for the next two years. The bill is now on the governor’s desk for his anticipated signature.

The following provisions will be adopted:

• A two-year extension of the quality-assurance fee and the AB 1629 sunset date, from July 31, 2013, to July 31, 2015.
• There will be an increase in the 2012-13 QA fee, and these funds will be diverted to the general fund.
• No reduction in current base rates for 2012-13.
• The 2012-13 rates will not be rebased. The facility-specific Medi-Cal reimbursement rate will be the rate on file as of Aug. 1, 2011, (without the 10-percent payment reduction), adjusted for the projected cost of new mandates.
• A one-year postponement of the Quality and Accountability Program until 2013-14.
• Increases in the AB 1629 global budget cap of 3 percent in 2013-14 and 3 percent in 2014-15, with 1 percent for each year directed to fund the Quality and Accountability Program.
• Rebasing of rates for 2013-14 and 2014-15.

CAHF will notify members when the measure is signed by the governor. Staff contact: Nancy Hayward, (916) 441-6400, ext. 106, nhayward@cahf.org.